Bad pipe, broke. Rip out the ceiling and replace it. Sorry. A nozzle with the handle keeps the water off when not using, but the hose doesn't burst.

The most likly cause is that the hose was connected to the frostproof facuet during freezing weather. Buy a female hose thread cap and washer at any hardware or big box. Cap the facuet then while listening near facuet and wall,turn facuet on. You will likly hear water spraying inside wall. It is good to have a helper indoors listening on oppisite side of wall. Not the toughest thing around the house to repair but not many do-it-yourselfers can handle it.

It is also possible the spigot and pipe are not mounted properly.
The weekend kids finished off a lingering problem.

Pressure does not typically "build up." The only way water pressure can build up is when you have a hose filled with water in the hot sun and there is some slight expansion of the volume due to heat. However, that would not cause a huge pressure increase and would not damage your home plumbing. You had a defect in your plumbing and what your kids were doing was likely coincidental. As you surmised, a hose would fail long before a non-defective plumbing system.

I did something similar to one of my faucets. I pulled too hard on the hose and twisted the spigot on the copper pipe. It broke inside the wall.